Is it Time to Invest in Blockbuster?

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A controversial move by CEO Reed Hastings of Netflix has sent the company stock into a free fall. Netflix (NFLX) seemed to be owning the entertainment content world with streaming movies, TV episodes, and shipping disks straight to your house for around 8 dollars a month. It seemed like almost too good to be true. Obviously it was, with recent price hikes.

What Netflix did to gain its immediate success was implement an amazing business model, shipping DVD's through mail. They cut out the cost of retail stores, excessive employees, and gave the benefit of convenience by shipping to folks straight at home.